Property Tax Relief: Exemptions to Consider
Property tax exemptions are savings that contribute to lowering a homeowner’s property tax bill. Clients should review their real estate tax bill to ensure they are receiving exemptions they are entitled to as some exemptions may have been incorrectly lost when they transferred the title to their home to their revocable trust.
Additionally, individuals should be aware that the automatic renewal of some exemptions due to COVID-19 has ended and, as a result, individuals receiving certain exemptions may need to reapply in 2023 for the exemption.
If a homeowner believes they are entitled to exemptions in previous years, a Certificates of Error application can be filed to request past savings.
Exemptions designed to assist property owners in managing the costs and increases associated with their annual real estate tax bill include:
- Qualifications: Must own and occupy the property as a primary residence while being responsible for real estate taxes.
- Reduction: Maximum reduction of up to $8,000 in taxable assessed value in 2023.
- No annual renewal is required.
Senior Citizens Homestead Exemption:
- Qualifications: Aged 65 or older by December 31st of the assessment year must own and live in the property while being responsible for real estate taxes.
- Reduction: Maximum reduction of up to $5,000 from the assessed value.
- Automatic Renewal
Senior Citizens Assessment Freeze Homestead Exemption:
- Qualifications: Aged 65 or older during the tax year, have a total household income of $65,000 or less and meet other criteria.
- Benefits: Protects against rising property values by freezing the assessment at a base year
- After initial approval, homeowners must renew this exemption annually.
Standard Homestead Exemption for Veterans with Disabilities:
- Qualifications: Illinois residents who have served in the U.S. Armed Forces, have not been dishonorably discharged, and have a service-connected disability of at least 30%. Additionally, the property owner must occupy the property as of January 1st, and the total assessed value must be below $250,000.
- Homeowners must renew this exemption on an annual basis.
Additional exemptions and programs in some counties in Illinois include Long-time Occupant Homestead Exemption (Cook County only), Duplicate Delinquency Tax Notice, Senior Citizen Real Estate Tax Deferral Program, First Responder’s Surviving Spouse Tax Abatement, Property Tax Relief for Military Personnel, Veterans with Disabilities Exemption for Specially-Adapted Housing, Returning Veterans’ Homestead Exemption, Persons with Disabilities Homestead Exemption, Natural Disaster Homestead Exemption, and Homestead Improvement Exemption.
Check for potential loss of exemptions during property title transfers and remember to reapply in 2023 due to COVID-19-related automatic renewal expirations. These exemptions help manage annual tax bill costs and offer varying levels of reduction in taxable value.